Effects of portfolio risk for average stocks

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In a hypothetical example, given someone who has average risk tolerance, and that person needs to diversify, explain how the Selected Realized Returns (1926–2013) and the Effects of Portfolio Risk for Average Stocks should impact their future investment decisions and why. Please show how this person should strategically invest their money if they have 100,000 in the bank to invest and they needed to diversify their portfolio.

Reference no: EM13929490

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